23.09.2016 - Commodity markets are corrected against the dollar strengthening
The price of gold has corrected slightly after grew against the publication of the Fed's statement on monetary policy. Thus, monetary policy settings in the United States have not changed, which is positive for gold, which loses its attractiveness compared with assets with interest income in case of rising interest rates. Demand for gold is growing in the autumn in connection with the preparation for the holiday period in China and India, which are the largest consumers of gold. Today we can see a decrease in prices on the background of fixing positions before the weekend. Our medium-term outlook remains positive with potential targets levels around 1400-1430 dollars per barrel.
The price of Light Sweet crude oil corrected downwards after the recent increase caused by an unexpected decline in US oil inventories by 6.2 million barrels. In addition, support for the bulls became the news on the strike in Norway, which threatens to undermine the level of supply from the North Sea. It is worth noting that in addition to fixing positions, the reason for the downward correction has been the strengthening of the US dollar. In the near future, the focus of investors will be focused on the informal meeting of the members of OPEC and other major oil producers including Russia, at which will be discussed the issue of freezing the volume of oil production. Achieving consensus on the matter, according to our estimates is unlikely. Our medium-term outlook remains negative with potential targets at 40.00, 36.00 and 35.00 dollars per barrel.